Germany plans to restrict landlords’ right to terminate a lease for non-payment of rent due to corona epidemic

27/03/2020  On 25 March 2020, the German Bundestag unanimously adopted the draft law restricting the right of landlords to terminate a lease in order to protect tenants who are unable to pay their rent as a result of the Corona epidemic (the Bundestag communication of 25 March 2020 can be found here; the draft law of 24 March 2020 can be found here). The Bundesrat approved the draft law in a special session on 27 March 2020.

The wording of the new legislation is as follows:

“The landlord cannot terminate a lease of real properties or rooms for the sole reason that the tenant does not pay the rent in the period from 1 April 2020 to 30 June 2020 despite being due, if the non-payment is due to the effects of the COVID 19 pandemic. The link between the COVID 19 pandemic and non-payment must be substantiated.”

The period for which the landlord’s termination is restricted by law in the event of non-payment of rent due to the corona epidemic can be extended if necessary by a statutory order of the Federal Government to the months July to September 2020 (and possibly even further with the approval of the Bundestag).

The new restriction of the right to terminate a lease applies to both residential and commercial properties.

The law is scheduled to come into force on 1 April 2020, but still needs to be executed by the Federal President and promulgated in the Federal Law Gazette.

We will update this post when more details emerge. Please contact us at JP Rechtsanwälte if you need help.

 


About JP Rechtsanwälte:
JP Rechtsanwälte is a Cologne-based commercial law firm with an internationally focused boutique approach. JP maintains an excellent international network. Our main practice areas are Corporate/M&A, Venture Capital, Commercial, Finance and Restructuring as well as Real Estate.
Mario Lindner
Mario Lindner